The council has apologised to the foster family after failing to tell them about the 19-year-old's history of sexual behaviour with children.
The authority's director of social services, Phil Evans, said: "The council deeply regrets the distress and harm caused to the children and their parents. Senior managers have met with them to apologise and to find out what support they may need, now and in the future.
"The council has instigated an urgent case management inquiry into the circumstances of the young man's placement. The NSPCC has agreed to ensure that this work is done thoroughly. The carers have been asked to play an important role in finding out what went wrong."
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